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Atlas Home Supply has paid a constant annual dividend of $1.55 a share for the past 15 years. Yesterday, the firm announced the dividend will
Atlas Home Supply has paid a constant annual dividend of $1.55 a share for the past 15 years. Yesterday, the firm announced the dividend will increase next year by 8 percent and will stay at that level through year 3 (with no growth), after which time the dividends will increase by 2 percent annually. The required return on this stock is 12 percent. What is the current value per share?
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